USTR flags PH as among leading sources of fake meds (Sabong News)

The US government said the Philippines is one of six leading sources of counterfeit medicines distributed globally, but cited the country for passing laws and enforcing practices to prevent unauthorized camcording. In the 2022 Special 301 Report on Intellectual Property Protection and Enforcement released Thursday, April 28, the US Trade Representative (USTR) expressed concern over continued proliferation of counterfeit pharmaceutical products. The annual Special 301 Report lists US trading partners that violated their intellectual property (IP) rights and their adequacy and effectiveness in the protection and enforcement of IP rights. While the Philippines has retained its status and no longer in the Special 301 Watchlist for several years already, the USTR report mentioned the Philippines among leading sources of fake drugs. The latest report echoed a recent study by the Organization for Economic Cooperation and Development (OECD) and EU Intellectual Property Office (EUIPO), which found that China, India, the Philippines, Vietnam, Indonesia, and Pakistan are the leading sources of counterfeit medicines distributed globally. According to the USTR report, the past year, “countries continue to report significant quantities of counterfeit imports” from China, including COVID-19 testing kits, personal protective equipment (PPE) such as those air-purifying particulate respirators meeting US Department of Health certification standards (N95) and equivalent masks, sanitizers, detergents, and disinfectants. In the first year of the pandemic alone, the report said that US Customs and Border Control seized more than 30 million counterfeit face masks where US brands are the most popular targets for counterfeiters, and counterfeit. US-brand medicines account for 38 percent of global counterfeit medicine seizures. While it may not be possible to determine an exact figure, the report said that the World Health Organization (WHO) estimated that substandard or falsified medical products comprise 10 percent of total medical products in low- and middle-income countries. Also blamed in the proliferation of counterfeit drugs is the increasing popularity of online pharmacies that has aided the distribution of counterfeit medicines. A 2020 study by Pennsylvania State University found that illicit online pharmacies, which provide access to prescription drugs, controlled substances, and substandard or counterfeit drugs, represent between 67 percent to 75 percent of web-based drug merchants. Other ways to ship fake drugs include the use of legitimate express mail, international courier, and postal services to ship counterfeit goods in small consignments rather than ocean-going cargo to evade the efforts of enforcement officials to interdict these goods. Over 90 percent of US seizures at the border are made in the express carrier and international mail environments. Counterfeiters also continue to ship products separately from counterfeit labels and packaging to evade enforcement efforts that are limited by laws or practices that require counterfeit items to be “completed,” which may overlook the downstream application of counterfeit labels. The Office of the USTR has also urged e-commerce platforms to take proactive and effective steps to reduce piracy and counterfeiting, for example, by establishing and adhering to strong quality control procedures in both direct-to-consumer and consumer-to-consumer sales, vetting third-party sellers, engaging with right holders to quickly address complaints, and working with law enforcement to identify IP violators Meantime, the report cited the Philippines as among countries for their efforts to prevent unauthorized camcording. “The United States urges countries to adopt laws and enforcement practices designed to prevent unauthorized camcording, such as laws that have been adopted in Canada, Japan, the Philippines, and Ukraine,” the report added. According to the USTR, countries also need to update legal frameworks to effectively deter unauthorized camcording and keep up with changing practices. It listed Argentina, Brazil, Ecuador, India, Peru, and Russia for not effectively criminalize unauthorized camcording in theaters, although Peru and India have submitted draft legislation to address the issue. The report also suggested as another important practice is for the private sector to work on capacity building to help theater managers and employees to detect camcording and assist law enforcement. In response to the EU’s aggressive promotion of its exclusionary GI (geographic indication) policies, the US continued its intensive engagement in promoting and protecting access to foreign markets for US exporters of products that are identified by common names or otherwise marketed under previously registered trademarks. The United States is also concerned about the transfer of much of the GI application review process to EU Member States and the reduction of time periods for opposing registration of a GI that is part of the EU’s Common Agricultural Policy, adopted in 2021 and entering into force in 2023. Among its goals in the GI issue, the US has opposed efforts by EU to extend the protection given to GIs for wines and spirits to other products. It listed many countries, including India, Malaysia, and the Philippines for their reportedly slow opposition or cancellation proceedings, while Panama and Russia have no administrative opposition proceedings.